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3 years ago

The understatement of the ending inventory balance causes:

Business

1 answer:

Nina [5.8K]3 years ago

8 0

Answer: The correct answer is "E. Cost of goods sold to be overstated and net income to be understated.".

Explanation: The understatement of the ending inventory balance causes:

<u>Cost of goods sold to be overstated and net income to be understated.</u>

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Long term liabilities

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3 years ago

On January 1, Year 1, Price Co. issued $190,000 of five-year, 6 percent bonds at 96½. Interest is payable annually on December 3

Tasya [4]

Answer:

a) Cash received = $183,350

b) Interest expense = $12,730

c) Carrying value = $186,010

Explanation:

As per the data given in the question,

a) Face value of bond = $190,000

Issued at =0.965

Cash received = $190,000 × 0.965

= $183,350

b) Discount on bonds payable = $190,000 - $183,350

=$6,650

Annual amortization of discount on bonds payable =$6,650÷5

= $1,330

Cash interest = $190,000×0.60

= $11,400

Interest expenses = $11,400+$1,330

= $12,730

carrying value = $183,350 + ($1,330 × 2)

= $186,010

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3 years ago

Suppose that you are a systems analyst on a project that involves modifying the sales order process. Since your company receives

mina [271]

Answer:

Sample size = 384.16 ≈ 385

If we increase the order size to 25,000, there will be no change in the sample size as sample size is independent of the number of orders

Explanation:

Data provided in the question:

Number of sales order received per day = 2500

Confidence level = 95%

Certainty factor for 95% certainty = 1.96

Now,

Sample size = $0.25\times(\frac{\textup{Certainty factor}}{\textup{1 -Desired accuracy}})^2$

on substituting the respective values, we get

Sample size = $0.25\times(\frac{\textup{1.96}}{\textup{1 - 0.95}})^2$

Sample size = 384.16 ≈ 385

If we increase the order size to 25,000, there will be no change in the sample size as sample size is independent of the number of orders

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3 years ago

You are the newly appointed sales manager of the Rock Record Company and have been charged with the task of increasing revenues.

djyliett [7]

Answer:

increase the price of our products or services.

Explanation:

When the price elasticity is less than 1 (inelastic), then an increase in the price of our products or services will result in a proportionally smaller decrease in the quantity demanded. Therefore, by increasing our prices, we can increase total revenue even if the quantity demanded decreases a little.

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3 years ago

Recently, the owner of Martha's Wares encountered severe legal problems and is trying to sell her business. The company built a

Dovator [93]

Answer:

$523,644

Explanation:

The computation of the market value of this firm is shown below;

Asset at realizable value amount ($)

Building appraised value $1,300,000

Equipment current value $327,000

Inventory Market value ($270000 ÷ 2) $135,000

Accounts receivables ($155,200 × 97%) $150,544

Cash $11,100

Total assets gross available $1,923,644

(-) Owings -$1,400,000

The Market value of the firm $523,644

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3 years ago